House Committee Marks Up Bill on SSN Privacy

The House is considering bills that would criminalize the fraudulent sale or use of Social Security numbers.  One is particular is scheduled for a vote in the House Ways and Means Committee.  That is H.R. 3046, the Social Security Number Privacy and Identity Theft Protection Act of 2007.  According to the summary provided by the House Committee, the bill would prohibit Federal, State and local governments from:

• Selling SSNs (limited exceptions would be allowed, such as to facilitate law enforcement and national security, to ensure the accuracy of credit and insurance underwriting information and certain other Fair Credit Reporting Act purposes, for tax purposes, for research purposes, and to the extent authorized by the Social Security Act.)  Further exceptions may be made for other purposes by regulation.
• Displaying SSNs to the general public, including on the Internet.
• Displaying SSNs on checks issued for payment and on accompanying documents.
• Displaying SSNs on identification cards and tags issued to employees or their families; patients and students at public institutions; and Medicare cards.
• Employing prisoners in jobs that provide them with access to SSNs.
• Requiring the transmission of SSNs over the Internet without encryption or other security measures.

The private sector would be prohibited from:

• Selling or purchasing SSNs (limited exceptions would be made for law enforcement (including child support enforcement); national security; public health; health or safety emergency situations; tax purposes; to ensure the accuracy of credit and insurance underwriting information and certain other Fair Credit Reporting Act purposes; if incidental to the sale, lease or merger of a business; to administer employee or government benefits; for some research; or with the individual's affirmative, written consent.  Further exceptions may be made for other purposes by regulation.
• Displaying SSNs to the general public, including on the Internet.
• Displaying SSNs on checks.
• Requiring the transmission of SSNs over the Internet without encryption over the Internet without encryption or other security measures.
• Making unnecessary disclosures of another individual's SSN to government agencies.
• Displaying the SSN on cards or tags issued to employees, their family members, or other individuals.
• Displaying the SSN on cards or tags issued to access goods, services, or benefits.

Other provisions of the Act would create penalties of up to 5 years imprisonment and fine up to $250,000 for violations of the law relating to the display, sale, purchase, or misuse of the SSN, for offering to acquire an additional SSN for a fee, and for selling or transferring one's own SSN.  There would also be a civil penalty of up to $5,000 per incident.  Enhanced penalties would be applicable to repeat offenders.  One provision specifically would allow the States to place stronger protections over the use of SSNs without preemption.